“The first quarter marked a very strong start to the year as we reported
accelerated growth with double-digit increases in all key metrics,
including total revenues, cloud revenues, operating income and earnings
per share. Moreover, we continued to benefit from the leverage in our
operating model as reflected in the significant expansion in our
operating margin,” said Barak Eilam, CEO, NICE.

Mr. Eilam continued, “The strong start to the year was driven by the
more than 30% increase in cloud revenue with our CXone platform as the
underpinning of that growth. We are now taking the next step in the
evolution of CXone by ushering in a new era in CX with the introduction
of smart digital conversations. This builds on our CXone platform
strategy with an additional market leading innovation that enables our
customers to accelerate their transition in managing digital
experiences. This innovation is augmented by the acquisition of Brand
Embassy, announced earlier today.”

GAAP Financial Highlights for the First Quarter and Full Year
Ended March 31:

Revenues: First quarter 2019 total revenues increased 12.4% to
$377.0 million compared to $335.4 million for the first quarter of 2018.

Gross Profit: First quarter 2019 gross profit and gross margin
increased to $246.0 million and 65.2%, respectively, from $216.9 million
and 64.7%, respectively, for the first quarter of 2018.

Operating Income: First quarter 2019 operating income and
operating margin increased to $51.9 million and 13.8%, respectively,
compared to $34.2 million and 10.2%, respectively, for the first quarter
of 2018.

Net Income: First quarter 2019 net income and net income margin
were $37.1 million and 9.8%, respectively, compared to $23.5 million and
7.0%, respectively, for the first quarter of 2018.

Fully Diluted Earnings Per Share: Fully diluted earnings per
share for the first quarter of 2019 increased 56.8% to $0.58, compared
to $0.37 in the first quarter of 2018.

Operating Cash Flow and Cash Balance: First quarter 2019
operating cash flow was $182.4 million. In the first quarter $10.1
million was used for share repurchases. As of March 31, 2019, total cash
and cash equivalents, short term investments and marketable securities
were $890.9 million, and total debt was $458.2 million.

Non-GAAP Financial Highlights for the First Quarter and Full Year
Ended March 31:

Revenues: First quarter 2019 non-GAAP total revenues increased to
$377.9 million, up 11.9% from $337.6 million for the first quarter of
2018.

Gross Profit: First quarter 2019 non-GAAP gross profit and
non-GAAP gross margin increased to $266.5 million and 70.5%,
respectively, from $237.7 million and 70.4%, respectively, for the first
quarter of 2018.

Operating Income: First quarter 2019 non-GAAP operating income
and non-GAAP operating margin increased to $97.0 million and 25.7%,
respectively, from $78.9 million and 23.4%, respectively, for the first
quarter of 2018.

Net Income: First quarter 2019 non-GAAP net income and non-GAAP
net income margin increased to $75.5 million and 20.0%, respectively,
from $60.7 million and 18.0%, respectively, for the first quarter of
2018.

Fully Diluted Earnings Per Share: First quarter 2019 non-GAAP
fully diluted earnings per share increased 21.6% to $1.18, compared to
$0.97 for the first quarter of 2018.

Second Quarter and Full Year 2019 Guidance:

Second Quarter 2019: Second quarter 2019 non-GAAP total revenues
are expected to be in a range of $373 million to $383 million (2018
non-GAAP: $343.7 million). Second quarter 2019 non-GAAP fully diluted
earnings per share are expected to be in a range of $1.16 to $1.26 (2018
non-GAAP: $1.10).

Full Year 2019: Full year 2019 non-GAAP total revenues are
expected to be in a range of $1,558 million to $1,582 million (2018
non-GAAP: $1,453.4 million). The Company increased full year 2019
non-GAAP fully diluted earnings per share to be in an expected range of
$5.11 to $5.31 (2018 non-GAAP: $4.75).

Quarterly Results Conference Call

NICE management will host its earnings conference call today, May 16th,
2019 at 8:30 AM ET, 13:30 GMT, 15:30 Israel, to discuss the results and
the company’s outlook. To participate in the call, please dial in to the
following numbers: United States 1-866-804-8688 or +1-718-354-1175,
International +44(0)1296-480-100, United Kingdom 0-800-783-0906, Israel
1-809-344-364. The Passcode is 635 296 09. Additional access numbers can
be found at http://www.btconferencing.com/globalaccess/?bid=54_attended.
The call will be webcast live on the Company’s website at http://www.nice.com/news-and-events/ir-events.
An online replay will also be available approximately two hours
following the call. A telephone replay of the call will be available for
7 days after the live broadcast and may be accessed by dialing: United
States 1-877-482-6144, International +44(0)20-7136-9233, United Kingdom
0-800-032-9687. The Passcode for the replay is 667 515 36.

Non-GAAP financial measures consist of GAAP financial measures adjusted
to exclude: amortization of acquired intangible assets, share-based
compensation, certain business combination accounting entries,
amortization of discount on long term debt, tax adjustment re non-GAAP
adjustments and tax reform. The purpose of such adjustments is to give
an indication of our performance exclusive of non-cash charges and other
items that are considered by management to be outside of our core
operating results. Our non-GAAP financial measures are not meant to be
considered in isolation or as a substitute for comparable GAAP measures
and should be read only in conjunction with our consolidated financial
statements prepared in accordance with GAAP. Our management regularly
uses our supplemental non-GAAP financial measures internally to
understand, manage and evaluate our business and make operating
decisions. These non-GAAP measures are among the primary factors
management uses in planning for and forecasting future periods. Business
combination accounting rules requires us to recognize a legal
performance obligation related to a revenue arrangement of an acquired
entity. The amount assigned to that liability should be based on its
fair value at the date of acquisition. The non-GAAP adjustment is
intended to reflect the full amount of such revenue. We believe this
adjustment is useful to investors as a measure of the ongoing
performance of our business. We believe these non-GAAP financial
measures provide consistent and comparable measures to help investors
understand our current and future operating cash flow performance. These
non-GAAP financial measures may differ materially from the non-GAAP
financial measures used by other companies. Reconciliation between
results on a GAAP and non-GAAP basis is provided in a table immediately
following the Consolidated Statements of Income.

About NICENICE (Nasdaq: NICE) is the worldwide leading
provider of both cloud and on-premises enterprise software solutions
that empower organizations to make smarter decisions based on advanced
analytics of structured and unstructured data. NICE helps organizations
of all sizes deliver better customer service, ensure compliance, combat
fraud and safeguard citizens. Over 25,000 organizations in more than 150
countries, including over 85 of the Fortune 100 companies, are using
NICE solutions. www.nice.com.

Trademark Note: NICE and the NICE logo are trademarks or
registered trademarks of NICE. All other marks are trademarks of their
respective owners. For a full list of NICE’ marks, please see: http://www.nice.com/nice-trademarks.

Forward-Looking StatementsThis press release contains
forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. In some cases, forward-looking
statements may be identified by words such as “believe,” “expect,”
“seek,” “may,” “will,” “intend,” “should,” “project,” “anticipate,”
“plan,” and similar expressions. Forward-looking statements are based on
the current beliefs, expectations and assumptions of the Company’s
management regarding the future of the Company’s business, future plans
and strategies, projections, anticipated events and trends, the economy
and other future conditions. Examples of forward-looking statements
include guidance regarding the Company’s revenue and earnings and the
growth of our cloud, analytics and artificial intelligence business.

Forward looking statements are inherently subject to significant
economic, competitive and other uncertainties and contingencies, many of
which are beyond the control of management. The Company cautions that
these statements are not guarantees of future performance, and investors
should not place undue reliance on them. There are or will be important
known and unknown factors and uncertainties that could cause actual
results to differ materially from those expressed or implied in the
forward-looking statements. These factors, include, but are not limited
to, risks associated with competition, success and growth of the
Company’s cloud Software-as-a-Service business, cyber security attacks
or other security breaches against the Company, privacy concerns and
legislation impacting the Company’s business, the Company’s dependency
on first-party cloud computing platform providers, hosting facilities
and service partners, changes in general economic and business
conditions, rapidly changing technology, changes in currency exchange
rates and interest rates, difficulties in making additional acquisitions
or effectively integrating acquired operations, products, technologies
and personnel, successful execution of the Company’s growth strategy,
the effects of tax reforms and of newly enacted or modified laws,
regulation or standards on the Company and its products, and other
factors and uncertainties discussed in our filings with the U.S.
Securities and Exchange Commission (the “SEC”). You are encouraged to
carefully review the section entitled “Risk Factors” in our latest
Annual Report on Form 20-F and our other filings with the SEC for
additional information regarding these and other factors and
uncertainties that could affect our future performance. The
forward-looking statements contained in this presentation speak only as
of the date hereof, and the Company undertakes no obligation to update
or revise them, whether as a result of new information, future
developments or otherwise, except as required by law.

###

NICE LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

U.S. dollars in thousands (except per share amounts)

Quarter ended

March 31,

2019

2018

Unaudited

Unaudited

Revenue:

Product

$

70,031

$

61,370

Services

170,918

170,217

Cloud

136,078

103,855

Total revenue

377,027

335,442

Cost of revenue:

Product

5,881

8,137

Services

55,123

58,385

Cloud

70,046

51,993

Total cost of revenue

131,050

118,515

Gross profit

245,977

216,927

Operating expenses:

Research and development, net

46,566

45,867

Selling and marketing

102,067

89,926

General and administrative

34,714

36,372

Amortization of acquired intangible assets

10,701

10,585

Total operating expenses

194,048

182,750

Operating income

51,929

34,177

Finance and other expense, net

3,418

3,968

Income before tax

48,511

30,209

Taxes on income

11,447

6,683

Net income

$

37,064

$

23,526

Earnings per share:

Basic

$

0.60

$

0.39

Diluted

$

0.58

$

0.37

Weighted average shares outstanding:

Basic

61,842

61,054

Diluted

63,759

62,776

NICE LTD. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

U.S. dollars in thousands (except per share amounts)

Quarter ended

March 31,

2019

2018

GAAP revenues

$

377,027

$

335,442

Valuation adjustment on acquired deferred product revenue

15

15

Valuation adjustment on acquired deferred services revenue

2

306

Valuation adjustment on acquired deferred cloud revenue

872

1,886

Non-GAAP revenues

$

377,916

$

337,649

GAAP cost of revenue

$

131,050

$

118,515

Amortization of acquired intangible assets on cost of product

(870

)

(2,589

)

Amortization of acquired intangible assets on cost of services

(1,535

)

(823

)

Amortization of acquired intangible assets on cost of cloud

(14,805

)

(12,755

)

Valuation adjustment on acquired deferred cost of cloud

686

336

Cost of product revenue adjustment (1)

(105

)

(188

)

Cost of services revenue adjustment (1)

(2,144

)

(1,753

)

Cost of cloud revenue adjustment (1)

(907

)

(769

)

Non-GAAP cost of revenue

$

111,370

$

99,974

GAAP gross profit

$

245,977

$

216,927

Gross profit adjustments

20,569

20,748

Non-GAAP gross profit

$

266,546

$

237,675

GAAP operating expenses

$

194,048

$

182,750

Research and development (1)

(1,562

)

(2,344

)

Sales and marketing (1)

(5,676

)

(6,303

)

General and administrative (1)

(6,610

)

(4,782

)

Amortization of acquired intangible assets

(10,702

)

(10,585

)

Valuation adjustment on acquired deferred commission

93

–

Non-GAAP operating expenses

$

169,591

$

158,736

GAAP finance & other expense (income), net

$

3,418

$

3,968

Amortization of discount on long-term debt

(2,308

)

(2,163

)

Non-GAAP finance & other expense (income), net

$

1,110

$

1,805

GAAP taxes on income (tax benefits)

$

11,447

$

6,683

Tax adjustments re non-GAAP adjustments

8,882

9,775

Non-GAAP taxes on income

$

20,329

$

16,458

GAAP net income

$

37,064

$

23,526

Valuation adjustment on acquired deferred revenue

889

2,207

Valuation adjustment on acquired deferred cost of cloud revenue

(686

)

(336

)

Amortization of acquired intangible assets

27,912

26,752

Valuation adjustment on acquired deferred commission

(93

)

–

Share-based compensation (1)

17,004

16,139

Amortization of discount on long term debt

2,308

2,163

Tax adjustments re non-GAAP adjustments and tax reform

(8,882

)

(9,775

)

Non-GAAP net income

$

75,516

$

60,676

GAAP diluted earnings per share

$

0.58

$

0.37

Non-GAAP diluted earnings per share

$

1.18

$

0.97

Shares used in computing GAAP diluted earnings per share

63,759

62,776

Shares used in computing non-GAAP diluted earnings per share

63,759

62,776

NICE LTD. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS (continued)

U.S. dollars in thousands

(1)

Share-based Compensation

Quarter ended

March 31,

2019

2018

Cost of product revenue

$

(105

)

$

(188

)

Cost of services revenue

(2,144

)

(1,753

)

Cost of cloud revenue

(907

)

(769

)

Research and development

(1,562

)

(2,344

)

Sales and marketing

(5,676

)

(6,303

)

General and administrative

(6,610

)

(4,782

)

$

(17,004

)

$

(16,139

)

NICE LTD. AND SUBSIDIARIES

CONSOLIDATED CASH FLOW STATEMENTS

U.S. dollars in thousands

Quarter ended

March 31,

2019

2018

Unaudited

Unaudited

Operating Activities

Net income

$

37,064

$

23,526

Depreciation and amortization

41,808

37,937

Stock based compensation

17,004

16,139

Amortization of premium and discount and accrued interest on
marketable securities